MaltaMedia.com

The National Statistics Office (NSO) said that during the period under review, the shortfall between recurrent revenue and total expenditure of Central Government narrowed by €111.3 million and amounted to €188.4 million, when compared to the corresponding period in 2010.

In the first nine months this year, the increase in recurrent revenue of €135.3 million, outweighed the rise in expenditure of €24.0 million, resulting in an improvement in the government deficit when compared to the corresponding period last year.

NSO confirmed that during the first three quarters this yearA, recurrent revenue stood at €1,822.1 million, up by 8.0 per cent over last year. Higher returns were mainly registered from Value Added Tax (+€55.3 million), Customs and Excise duties (+€30.8 million), Social Security (+€22.4 million) and Grants (+€20.8 million). Conversely, a reduction in proceeds was recorded from Income Tax (- €3.8 million).

Total expenditure was recorded at €2,010.6 million, up from €1,986.6 million when compared to last year. These developments are the result of higher outlays on recurrent expenditure and interest payments. On the other hand, capital expenditure declined substantially.

The main contributors to the increase of €32.6 million in recurrent expenditure were, among others, contributions to government entities (+€9.3 million), personal emoluments (+€8.2 million), medicines and surgical materials (+€7.4 million), social security state contribution (+€5.8 million), an administration fee to Transport Malta (+€4.2 million) and public service obligations (+€3.6 million). Conversely, lower outlays were registered on social security benefits (-€8.5 million).

NSO added that capital expenditure was recorded at €183.4 million, a 12.5 per cent decline from last year. The lower expenditure on capital projects, by €26.2 million, was mainly due to the completion of the Malta South Sewage Infrastructure. This was partly offset by an increase in the EU Agricultural Fund for Rural Development (+€3.1 million).

The interest component of the public debt servicing costs for the period under review went up by €17.6 million and reached €159.5 million.

At the end of September 2011, Central Government debt stood at €4,368.2 million, up by €175.9 million, or 4.2 per cent, over the corresponding period last year.

This was the result of higher long-term borrowing, which added €340.7 million. On the other hand, short-term securities and foreign borrowing decreased by €155.0 million and €13.4 million respectively. The euro coins issued in the name of the Maltese Treasury went up by €3.9 million when compared to the euro coin stock as at the end of September 2010, and totalled €44.5 million